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Transcript of Colorscope, Inc.
In house error:
Keep high quality reputation
Small firm advantage (restructure)
Sales team focused on more clients
More profitable clients
Change pricing strategies!
Which system is better?
Current system: Same per page price plus specialty fees (no allocation of overhead)
By allocating costs to individual jobs you can determine profitability of each job for pricing and reviewing strategy on re-work
Customers under current system still place different demands on company resources but these differences are not reflected in pricing
What should be done about rework?
Quality Control Strategy
Prep -> Scanning ->
> Assembly -> Output -> QC
Change incentive system?
Document everything & create rework policies
Full Cost is the right metric!
Industry & Market Overview:
-Advertising companies in Southern California
-5 Step job process
-Founded on March 1, 1976
-Andrew Cha, owner
-Reputation for quality
-Investments in early technology
-Advent of new technologies employed by competing firms
-Over-dependence on established business